"Write Off" your debt companies

AL2009_2

Thanks for replies SueP/Tix.


They only accept unenforceable loans/cards. so in theory they will make a minimum £350 plus 10%.

The debt is transferred in around 14 days, then the new 'owners' of the debt will deal with the lender in regards to enforceability issues. Thus, claiming that your credit file will remain unaffected.

It is important that my credit file is not affect this is why I do not want to do it my self with regards to unenforceable contracts.

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Personally I have not missed any payments on my mortgage/credit cards/loans but in a couple of months I will start to fall behind.

With regards to Full and Final Settlements - will I be able to request this even though I have not missed any payments?
Has anyone done this?

Would it be worth getting the CCA - to prove that the debt(s) are not enforceable & then to offer a Full and Final Settlement?
Or will they not entertain the thought as I am not behind in payments?

RAS

AL2009 wrote: »

Thanks for replies SueP/Tix.


They only accept unenforceable loans/cards. so in theory they will make a minimum £350 plus 10%.

The debt is transferred in around 14 days, then the new 'owners' of the debt will deal with the lender in regards to enforceability issues. Thus, claiming that your credit file will remain unaffected.

It is important that my credit file is not affect this is why I do not want to do it my self with regards to unenforceable contracts.

---

Personally I have not missed any payments on my mortgage/credit cards/loans but in a couple of months I will start to fall behind.

With regards to Full and Final Settlements - will I be able to request this even though I have not missed any payments?
Has anyone done this?

Would it be worth getting the CCA - to prove that the debt(s) are not enforceable & then to offer a Full and Final Settlement?
Or will they not entertain the thought as I am not behind in payments?

Hi

Whether you go to this company or do it yourself, you will find that if you stop paying your debts, the creditor IS almost always able to place a default on your credit record, unless you have paid of the debt in full.

The OFT have put out warning about this sort of company and I would suggest that you start by making a formal complaint against them via Trading Standards, as I cannot see how their spiel can be delivered.

Unenforceable debts are just that, unenforceable. They still exist until the debt is paid off. Unless the full payment is made, the creditor can mark your credit record. What they cannot do if the debt is unenforceable is pursue you throught the courts successfully, as long as you fight the case.

OzzyB

I have a £2,500 loan and I got in touch with a company who is willing to buy my debt of me for £600. I just want to known if these type of companies are the real deal or they are too good to be true.

GeorgeUK

I would say avoid like the plague.

McKneff

More details of what they have actually said are required. Your post isnt very clear.

too good to be true etc, I'm with George at the moment.

dma1989

I worked for one of these companies, actually. An outbound sales role, cold calling, and hard selling these products.

I left after 2 weeks because I refused to sell the product. But the 8 or 10 people I worked with were getting 15-20 sales a day. (Bear in mind they only accepted debts more than £1000, and their fees were £350 and 10% of the loan value), so the company were making about £72,000 a day)

Plus, they changed the name of the company practically every day. One day it was Credit Card Killer, then WeBuyYourDebt, and a couple of others in between.

Then a couple of days ago, I went to the company and told them that companies like this were being investigated by the OFT (http://news.bbc.co.uk/1/hi/business/8113482.stm). Phoned one of my old work mates there and yesterday, the office was shut, and the owners had disappeared.

And think about it:

MINIMUM £450 income a sale, 10 people getting 20 a day over 1 working month = £1,800,000 in income for them, and they just disappeared into thin air.

So yeah, scam.

AGB863

there has been an article on BBC breakfast news this morning - the OFT have clearly said that these companies can not by the debt from you as you do not own the debt and that these companies need to be reported to them / trading standards.

fermi

AGB863 wrote: »

there has been an article on BBC breakfast news this morning - the OFT have clearly said that these companies can not by the debt from you as you do not own the debt and that these companies need to be reported to them / trading standards.

Here: BBC News | Alert on misleading debt adverts

The Office of Fair Trading (OFT) says there has been a surge in these adverts from debt and claims management companies.

But it says debts cannot legally be sold without a lender's permission.

Some companies offering this "service" are now going to be prosecuted or closed down.

And full text of the OFT alert.

OFT warns consumers about 'debt sale' scams

The OFT is warning consumers not to be taken in by businesses claiming to help them become debt free by 'buying' or 'selling on' their debts.

The warning follows a significant increase in the number of adverts on the internet and in newspapers from claims management companies that misleadingly state they can take over liability for debts or write off debts by purchasing consumers' credit agreements.

In fact the law does not allow the sale of debt without the lender's permission and so businesses that suggest otherwise are making clearly misleading claims. Brokers who introduce clients to claims management companies that say that they can 'buy' and 'sell on' consumer debts are also misleading consumers.

Consumers need to be aware that if they 'sell' their debts to one of these businesses, either directly or through a broker, they will still be liable for their original repayment obligations as well as losing the money they paid for this false service.
Consumers will also still be subject to any debt collection activity and negative credit scoring associated with the original debt.

The principal regulator for claims management companies is the Ministry of Justice but businesses that operate in the credit/debt sector also need to be licensed by the OFT. Some of the firms offering these services do not have consumer credit licences and the OFT is working in partnership with local trading standards services to prosecute them for unlicensed trading. Formal licensing enforcement action has already been initiated against licensed companies whose advertising or websites are making these misleading claims.

Ray Watson, OFT Director of Credit, said:

'Like most scams, when something looks too good to be true, it usually is, and this is certainly the case here. You cannot simply sell on your debt and its liabilities, and businesses that make misleading claims to the contrary are just trying to take advantage of consumers' distress.'

'The OFT will not hesitate to take swift action against businesses which deliberately mislead consumers.'

'Consumers with debt problems should contact their creditor to arrange a repayment plan or their local Citizens Advice Bureau who will be able to provide free advice.'

OzzyB

Thanks guys for confirming my suspicions

pickle7436

Hi there
Here's the thing.
My boyfriend has paid a company £100 to look into writing off the debts he has on a couple of credit cards he opened before 2007. Apparently any cards activated before then have some clause missing in the small print which makes the debt void.
Has anyone else heard this? Is it true? Has anyone else used one of these companies successfully? Is it all a scam???